factual

Regarding the Churchs Chicken franchise agreement, besides the agreement itself, what other documents are considered part of the entire agreement between the parties?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

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Addendum, which shall memorialize the Royalty Fee Reduction benefits of the Platinum Incentive Plan.

  • 3. Termination. This Addendum, and the development incentives offered pursuant to this Addendum, shall terminate following written notice to Developer upon the occurrence of any of the following events during the Development Incentive Period:
    • A. Developer fails to open the first Franchised Restaurant under the Development Agreement by the First Restaurant Deadline;
    • B. Developer fails to open its second or any additional Franchised Restaurant within twelve months following the opening date of the previous Franchised Restaurant opened by Developer under the Development Agreement;
    • C. Developer fails to meet any Site Acceptance Date or Opening Date for any Franchised Restaurant required to be developed under the Development Agreement; or
    • D. Developer receives a written notice of default under the Development Agreement or any other agreement with Cajun or its affiliates and fails to cure the default within the applicable cure period, if any.
  • 4. Effect of Termination. If this Addendum is terminated, Developer shall not receive any further development incentives with respect to any additional Franchised Restaurants developed under the Development Agreement and any open and operating Franchised Restaurant that received a reduced royalty rate as a development incentive shall immediately revert to a 5% royalty rate.
  • 5. Capitalized Terms. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Development Agreement.
  • 6. Limited Modification. Except as expressly modified by this Addendum, the Development Agreement remains unmodified and in full force and effect.
  • 7. Counterparts. This Addendum may be executed in counterparts, and each copy so executed and delivered shall be deemed to be an original. Any signature by email or facsimile shall be binding.

IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the day and year first above written.

CAJUN: CAJUN GLOBAL LLC DEVELOPER:

FORM OF DEVELOPMENT INCENTIVE ADDENDUM ("Platinum Incentive Plan) TO CHURCH'S TEXAS CHICKEN FRANCHISE AGREEMENT

| THIS DEVELOPMENT Chicken Franchise Agreement Global LLC ("Cajun") and 202 | INCENTIVE ADDENDUM ("Addendum") to the Church's Texas dated as of ("Franchise Agreement") between Cajun ("Franchisee") is entered into as of the day of , | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | RECITALS | | | Pursuant to the Franchise franchised Church's Texas Chicken Restaurant"). | Agreement, Cajun granted Franchisee the right to develop and operate a restaurant located at (the "Franchised | | | In order to encourage has implemented a development Chicken Development Agreement Church's Texas Chicken restaurants | the development of franchised Church's Texas Chicken restaurants, Cajun incentive program for franchisees that signed a qualifying Church's Texas pursuant to which they agreed to develop a minimum of 5 franchised within 5 years from the Effective Date of the Development Agreement. | | | Since | | | | the | | | | development | | | | of | | | | the | | | | Franchised | | | | Restaurant | | | | meets | | | | the | | | | criteria | | | | for | | | | the | | | | Platinum | | | | Incentive | | | | Plan, | | | | Cajun | | | | and | | | | Franchisee | | | | are | | | | entering | | | | into | | | | this | | | | Addendum | | | | to | | | | provide | | | | the | | | | Platinum | | | | Incentive | | | | Plan | | | | benefits | | | | to | | | | Franchisee | | | | and | | | | to | | | | modify | | | | certain | | | | provisions | | | | of | | | | the | | | | Franchise | | | | Agreement. | | | | NOW, | | | | THEREFORE, | | | | in | | | | consideration | | | | of | | | | the | | | | mutual | | | | covenants, | | | | agreements | | | | and | | | | obligations | | | | set | | | | forth | | | | below, | | | | and | | | | other | | | | good | | | | and | | | | valuable | | | | consideration, | | | | the | | | | receipt | | | | and | | | | sufficiency | | | | of | | | | which | | | | are | | | | hereby | | | | acknowledged, | | | | the | | | | parties, | | | | intending | | | | to | | | | be | | | | legally | | | | bound, | | | | agree | | | | as | | | | follows: | | | | Initial | | | | Franchise | | | | Fee. Schedule | | | | 1, | | | | paragraph | | | | 1 | | | | shall | | | | state | | | | the | | | | Initial | | | | Franchise | | | | Fee | | | | is | | | | $0.00. | | | | Reduced | | | | Royalty | | | | Fee. Notwithstanding | | | | anything | | | | to | | | | the | | | | contrary | | | | contained | | | | in | | | | Section | | | | 3.B. | | | | of | | | | the | | | | Franchise | | | | Agreement, | | | | during | | | | the | | | | first | | | | year | | | | the | | | | Franchised | | | | Restaurant | | | | is | | | | open, | | | | Franchisee | | | | shall | | | | pay | | | | the | | | | Royalty | | | | Fees | | | | shown | | | | below: | Royalty Fee 0% (Year 1 after Restaurant Opens) 2% (Year 2) 3% (Year 3) 4% (Year 4) 5% (Year 5 and thereafter) | | Grand Opening Match. Franchisor shall match Franchisee's expenditures for Grand Opening for the Franchised Restaurant up to a maximum of $4,000.

Capitalized Terms. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement.

Limited Modification. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.

Counterparts. This Addendum may be executed in counterparts, and each copy so executed and delivered shall be deemed to be an original. Any signature by email or facsimile shall be binding.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

Based on the 2025 Churchs Chicken Franchise Disclosure Document, several addenda and agreements can modify the original franchise agreement. For instance, an Incentive Addendum may be added to the Churchs Chicken Franchise Agreement, modifying certain provisions to provide Platinum Incentive Plan benefits to franchisees who meet specific development criteria. This addendum alters terms like the initial franchise fee and royalty fees, showcasing how the original agreement can be adjusted based on performance and incentives.

Another example is the Renewal Addendum, which modifies the terms of the Churchs Texas Chicken Franchise Agreement for a renewal term. This addendum, entered into simultaneously with the execution of a new Franchise Agreement, changes sections related to the renewal term, renewal fees, and references to the initial term. Such addenda ensure that the franchise agreement remains relevant and updated as the franchisee's relationship with Churchs Chicken evolves.

Additionally, a Development Agreement may be in place, and any amendments to it are considered part of the overall agreement. Terms not defined in the amendment will have the same meaning as in the original Development Agreement, and unless specifically modified, the Development Agreement remains in full effect. These additional documents and addenda are crucial for understanding the complete scope of the franchisee's obligations and rights under the Churchs Chicken franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.